ISSUE 1
SUMMER 2012
looking after generations throughout West Lothian
a guide to financial and legal choices
introduction West Lothian Financial Inclusion Network is a partnership of organisations throughout West Lothian to help people of all ages with any financial challenges they may face. This directory is designed for practitioners supporting people aged
over 60 and/or their carers to increase awareness about issues related to financial and legal planning in later life and sources of further information. Please note that it is not the intention of this directory to offer direct financial or legal advice or to recommend any particular service or organisation.
contents section 1
section 2
section 3
section 4
section 5
section 6
section 7
Making sure you get all the money you’re entitled to: Benefits.....page 1 Tax credits.....page 2 Exemptions and discounts.....page 2 Looking after someone else’s money and welfare: Carers.....page 3 Power of attorney (financial and welfare).....page 4 Guardianship.....page 5 Making sure your wishes are carried out: Wills.....page 6 Living wills/Advance directives/Advance statements.....page 6 Funeral planning.....page 7 Planning for your family’s future: Care home funding.....page 8 Trusts.....page 9 Professional services – free and paid: Legal advice.....page 11 Financial advice.....page 12 What can go wrong?: Financial harm.....page 13
Local Services: Directory....page 14
Many older people do not claim all the money they are entitled to, either because they are unaware of their right to do so, or because they feel that it is “charity”. There are many tax credits and benefits available to people aged over 60 which they have every right to claim, and there are many organisations that can assess someone’s financial situation and help them gain as much income in retirement as possible.
Benefits:
section 1
Making sure you get all the money you’re entitled to:
Depending on their national insurance contributions, most people are entitled to the State Pension when they reach pension age (currently 65 for men, increasing from 60 to 65 for women, and to 66 for everyone by October 2020). Other benefits may increase income or help pay rent and/or council tax, a Winter Fuel Payment to help with heating costs and free or reduced cost NHS services. If someone needs extra help because of health problems, they may be able to claim Attendance Allowance or Disability Living Allowance. Someone who is caring for a person for over 35 hours a week may be able to claim Carer’s Allowance.
Relevant local services: Sources of more information: organisation )
phone number %
website H
Age UK Advice
0800 169 65 65
www.ageuk.org.uk
Age Scotland Helpline
0845 125 9732
www.agescotland.org.uk
Benefits Enquiry Line Text Phone
0800 882200 0800243355
www.direct.gov.uk/benefits
Jobcentre Plus Text Phone
0800 055 6688 0800 023 4888
www.direct.gov.uk/en/ MoneyTaxAndBenefits/Benefits TaxCreditsAndOtherSupport/ Inretirement/index.htm
1
section 1
Tax credits: Tax credits are payments from the government to ensure that everyone receives a minimum income depending on their situation. For example, pension credit is payable to anyone of pension age whose income is below a guaranteed minimum level set by the government.
Relevant local services:
Sources of more information: organisation )
phone number % website H
Age UK Advice
0800 169 65 65
www.ageuk.org.uk
Age Scotland Helpline
0845 125 9732
www.agescotland.org.uk
The Pension Service PO Box 3 Edinburgh EH91 5AF
0800 99 1234
www.direct.gov.uk/en/ Pensionsandretirementplanning/ PensionCredit/DG_10018692
Text Phone
0800 169 0133
Exemptions and discounts: Everyone in Scotland gets free prescriptions and sight tests through the NHS, but these may be of particular interest to people as they grow older. Anyone aged 60 or over is eligible for a national entitlement card giving free bus travel throughout Scotland, and reduced train fares. Anyone unable to use buses can apply for a West Lothian taxicard giving a ÂŁ3 discount on fares, and those in receipt of certain disability allowances can apply for a free blue badge to be able to park in designated spaces close to their destination.
Sources of more information:
2
organisation )
phone number % website H
Transport Scotland
0141 272 7170
www.transportscotland.gov.uk/ public-transport/concessionarytravel/about-the-scheme
As people grow older, it is more likely that they will need help from other family members or friends on a variety of practical issues on a temporary or permanent basis. It is difficult to look after someone else’s finances unless they have previously given permission while they have the ability to do so.
section 2
Looking after someone else’s money and welfare:
Carers: Someone who undertakes a “substantial and regular” caring role for another person is entitled to a carer’s assessment which can identify needs and services and support to help fulfil those needs. Carers may be entitled to carer’s allowance, carer’s credit and discounts on rent and council tax. There is also the Disability Reduction Scheme to reduce the level of council tax payable to the lowest band for households where someone has a disability which requires alterations to their home.
Relevant local services:
Sources of more information: organisation )
website H
Council Tax Reduction for Disabled People
www.direct.gov.uk/en/DisabledPeople/ FinancialSupport/Taxreliefandreductions/ DG_10026451
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section 2
Power of Attorney (financial and welfare): Power of Attorney enables someone to manage another person’s finances or to make decisions about their welfare, but only if they have previously given permission while they have the “capacity” to do so (before a diagnosis of dementia, for example). A Power of Attorney is a legal document which must be registered with the Office of the Public Guardian. A solicitor will usually charge a fee to draw up a Power of Attorney document, and the Office of the Public Guardian charges a fee to register the document. There are two types of Power of Attorney, although they are often both granted at the same time: 1. A continuing Power of Attorney for financial matters 2. A welfare Power of Attorney for medical and other issues The person granting Power of Attorney can choose one or more family members or friends as their attorney, or a professional such as a solicitor. The Power of Attorney often only becomes active once the granter lacks the capacity to make decisions for themselves.
4
Relevant local services:
Guardianship: Like Power of Attorney, guardianship has to be registered with the Office of the Public Guardian. However, a guardianship order is required for someone to manage another person’s financial and welfare affairs after that person has been diagnosed with “incapacity”, and has to be lodged with a sheriff court. The person’s needs and preferences still need to be taken into account. It is a more complex and usually more expensive process than Power of Attorney.
Relevant local services:
Sources of more information: organisation )
phone number %
website H
Mental Welfare Commission for Scotland Thistle House 91 Haymarket Terrace Edinburgh EH12 5HE
0131 313 8777 Service user and carer freephone: 0800 389 6809
www.mwcscot.org.uk/web/ FILES/Publications/Money_ Matters_2.pdf
Office of the Public Guardian Scotland Hadrian House Callendar Business Park Callendar Road Falkirk FK1 1XR
01324 678300
www.publicguardian-scotland. gov.uk
5
section 3
Making sure your wishes are carried out: Wills: Although not required by law, it is a good idea for everyone to prepare a will to make clear how you want your possessions distributed after your death. This ensures that your loved ones receive everything you want them to (for example children from a previous marriage or unmarried partners) and also that your estate is not liable to unnecessary tax bills. It is usually best to get a will drawn up by a solicitor or other legal expert, and to revise it if your circumstances change. If you die without making a will (“intestate”) it can create huge legal, financial and emotional difficulties for families and partners and lead to long delays in money and possessions being distributed.
Relevant local services: Sources of more information: organisation )
phone number % website H
Age Scotland
0845 833 0200
www.ageuk.org.uk/moneymatters/legal-issues/makinga-will/
Citizens Advice Scotland
www.adviceguide.org.uk/ index/family_parent/family/ wills.htm
Directgov – making a will
www.direct.gov.uk/en/ Governmentcitizensandrights/ Death/Preparation/ DG_10029800
Living wills/advance directives/advance statements: A living will (or “advance directive” or “advance decision”) allows a person to make decisions about their future medical treatment, which would apply should they lack capacity in the future. Living wills are usually legal documents and only apply where the person lacks capacity to state their wishes at the time. A living will cannot be used to specify anything illegal (e.g. to help someone commit suicide). An “advanced statement” is a more general expression of care requirements, including religious and cultural preferences, to be taken into account if they lose capacity to express their wishes in the future. 6
Relevant local services: Sources of more information: organisation )
website H
Directgov – Advance directive
www.direct.gov.uk/en/Governmentcitizensandrights/ Death/Preparation/DG_10029429
Mental Health Alliance
www.mentalhealthalliance.org.uk/policy/ documents/11AdvanceDirectives.pdf
Funeral planning: Many people are concerned that their families will have to bear the cost of their funeral, and prefer to pay for their funeral many years in advance. The money paid is held in trust or is used to buy a whole life insurance policy and the person can specify their wishes for the funeral itself (funeral director, where the funeral will take place etc). However, sometimes the plan does not cover the whole cost of the funeral, and the family can find themselves having to pay unexpected costs which were not intended by the person. It is important to check the small print very carefully before taking out a plan or insurance policy to cover funeral costs.
Relevant local services: Sources of more information: organisation )
phone number % website H
Age Scotland
0845 833 0200
www.ageuk.org.uk/scotland/ health-wellbeing/relationshipsand-family/bereavement/
Cruse Bereavement Care
0844 477 9400
www.crusebereavementcare.org. uk/WhenSomeoneDies.html
Directgov – Paying for a Funeral
www.direct.gov.uk/en/ Governmentcitizensandrights/ Death/WhatToDoAfterADeath/ DG_066724
7
section 4
Planning for your family’s future Care home funding: If someone moves into a care home, their fees need to be paid either from their own income (self-funding) or through a local authority. The first £163 a week of the fees are paid by the local authority (plus an extra £74 a week if the person has been assessed as needing nursing care) – these figures apply in 2012-13. The local authority will then carry out a financial assessment to discover what
savings, property and other assets can be used to pay the rest of the fees. Many people are concerned that their homes will have to be sold if they move into a care home – this is not always the case, if your partner or someone aged over 60 or under 16 is already living there. Note that the rules regarding paying for care homes are different in Scotland from other parts of the UK.
Sources of more information: organisation )
phone number % website H
Age Scotland
0845 833 0200
www.ageuk.org.uk/scotland/ home--care/care-homes/payingfor-permanent-residential-care/
Alzheimer Scotland
0808 808 3000
www.alzscot.org/pages/info/ freepersonalcare.htm
Counsel and Care
0845 300 7585
www.firststopcareadvice.org.uk/ downloads/resources/2818.pdf
Scottish Government
8
www.scotland.gov.uk/Resource/ Doc/230561/0062673.pdf
Trusts: This is a very complicated area. However, putting someone’s assets into a trust is a way of protecting those assets (e.g. a home or investments) so that they cannot be claimed by a creditor chasing debts or a public authority (for example, for care home fees) and also to avoid paying inheritance tax on the assets after the person’s death. The assets are no longer owned by the person, but by the trust itself and decisions about how the asset is used is made by people
appointed as “trustees” (usually family members and a solicitor). It is very important to get specialist legal support in setting up what is called a “family discretionary trust”, as the timing and exact wording can make a great difference as to its effectiveness. Local authorities and the taxman may challenge the terms of a discretionary trust and claim the funds, for example if a trust has been made shortly before someone’s death or their move into a care home.
Relevant local services: Sources of more information: organisation )
website H
Her Majesty’s Revenue and Customs
www.hmrc.gov.uk/trusts/types/ discretionary-accum.htm
9
10
section 5
Professional services – free and paid Legal advice: Professional firms of solicitors usually charge a fee, although some services may be available to some people through legal aid. Some solicitors offer to draw up wills in return for a donation to charity (there are several schemes where solicitors offer to write a will for free during a particular month in exchange for a donation to charity – September for Will Relief Scotland or November for Will Aid.
Relevant local services:
Sources of more information: organisation )
phone number %
website H
Scottish Legal Aid Board
0845 122 8686
www.slab.org.uk
Will Aid
0300 0300 013
www.willaid.org.uk
Will Relief Scotland
01631 563737
www.willreliefscotland.co.uk
11
section 5 7
Financial advice: There are many different types of financial advice available, and it is very important to find the appropriate advice for your situation. It is particularly important that you do not pay expensive fees to commercial organisations when superior and independent advice may be available for free.
Debt advisors: If you have difficulties with debt, you can access free financial advice through services such as West Lothian Council Advice Shop or Citizens Advice Bureau West Lothian or contact the National Debtline (see details below). You should never have to pay for support in this situation.
Independent financial advisers: If you are looking for help with a mortgage, pension or investments, an independent financial adviser (IFA) may be able to help you. An IFA may not charge you a fee but in that case it is likely that they will be paid a commission by the company offering the product required – they
are required by law to provide you with details of the fee or commission charged. After January 2013, IFAs will no longer be allowed to be paid a commission, which means that they will have to charge a fee. There are other kinds of financial advisers who are tied to one or several products. If you want to be sure that you are getting the widest choice possible, make sure that your adviser is a genuine IFA (they are also the most highly qualified).
Accountants: An accountant can help with personal tax affairs (e.g. completing and submitting self assessment forms to HMRC) and also provide services to businesses including payroll, year end accounts etc.
Credit unions: Credit unions are locally run financial co-operatives offering savings accounts, loans and other financial services to their members.
Relevant local services:
Sources of more information: organisation )
phone number %
Find Your Credit Union National Debtline Unbiased – find independent financial advisers 12 10
website H www.findyourcreditunion.co.uk
0808 808 4000
www.nationaldebtline.co.uk/ scotland/ www.unbiased.co.uk
Financial harm: Harm can be caused by anyone and take place anywhere. There are different types of harm including physical, sexual, psychological, neglect and self harm, as well as financial harm.
section 6
What can go wrong?
Financial harm includes stealing, fraud, pressure to hand over or sign over property or money, misuse of benefits or stopping someone getting their money or possessions.
Relevant local services:
11 13
14 Financial harm
Credit union
H www.brianmaloney.co.uk
enquiries@caesar-howie.co.uk H www.caesar-howie.co.uk H www.seniorissues.co.uk
01506 282252
01506 776700
01506 650198
01506 871796
01506 815900
Adult Protection West Lothian Council (age 16 - 64)
Adult Protection West Lothian Council (age 65+)
Blackburn Seafield & District Credit Union 10 Sycamore Walk Blackburn EH47 7LQ
Brian Maloney 15A West End West Calder EH55 8EH
Caesar and Howie Central Scotland Law Group 29 George Street Bathgate EH48 1PG
committee@bsdcreditunion.co.uk
Financial harm
01506 431200
Adult Protection (Police)
Care home funding Guardianship Living Wills Power of attorney Solictors / Wills / Trusts
Accountant
Financial harm
Financial harm
services offered
01506 281028
website H
Adult Protection (outof-hours Social Care Emergency Team)
email address
phone number %
section 7
organisation )
Local services directory:
15
0845 6070129
01501 741222
Edinburgh Advocacy and Representation Service Forecourt Business Centre Ashley Place Edinburgh EH6 5PX
J B Mortgage Solutions 17 Market Place Whitburn EH47 0EU
01506 771887 Duncan Charles, Adults with Incapacity & Mental Health Officer Team Manager, West Lothian Council
Advice Lines 01506 enquiries@cabwestlothian.org.uk 432977 H www.cabwestlothian.org.uk Admin only 01506 436132 Appointments Line 01506 431061
Citizens Advice Bureau West Lothian Suite Seven, Shiel House Craigshill, Livingston EH54 5EH
Strathbrock Partnership Centre, 189a West Main Street, Broxburn EH52 5LH
enquiry@jbmortgagesolutions.com H www.jbmortgagesolutions.com
info@ears-advocacy.org.uk H www.ears-advocacy.org.uk
office@carers-westlothian.com H www.carers-westlothian.com
01506 771750
website H
Carers of West Lothian Strathbrock Partnership Centre 189a West Main Street Broxburn EH52 5LH
email address
phone number %
organisation )
Financial harm Guardianship Power of attorney
Funeral planning Wills
Benefits Carers Tax credits
Benefits Carers Debt advice Legal support Tax Tax credits
Benefits Carers Power of attorney Tax credits
services offered
16 01501 740345
0131 622 6666
01506 283000
01506 436666
01506 282319
Sneddon Morrison Solicitors 16 East Main Street Whitburn EH47 0RB
VOCAL Carers Advocacy Service 8-13 Johnston Terrace Edinburgh EH1 2PW
West Lothian Council Advice Shop
West Lothian Credit Union Unit 57a, The Centre Livingston EH54 6NB
West Lothian Taxi cards
Carers Power of attorney
Guardianship Living wills Power of attorney Solicitors Trusts, Wills
Living wills Wills
Accountant
services offered
H www.westlothian.gov. uk/1523/1526/1378/1380
info@westlothiancreditunion.co.uk H www.westlothiancreditunion.co.uk
Exemptions and discounts
Credit union Funeral planning
Benefits advice.shop@westlothian.gov.uk H www.westlothian.gov.uk/Community-life-and- Debt advice Tax credits leisure/theadviceshop/
advocacy@vocal.org.uk www.vocal.org.uk
law@sneddons-ssc.co.uk H www.sneddonmorrison.co.uk
dennis@saltirewillsolutions.co.uk H www.saltirewillsolutions.co.uk
01738 700115
website H
Saltire Will Solutions
email address enquiries@petermckinneyassociates.co.uk H www.petermckinneyassociates.co.uk
phone number %
Peter McKinney Associates 0131 331 3377 14 West Terrace South Queensferry West Lothian EH30 9LL
organisation )
section 7
Notes:
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17
Office 2 Evans Business Centre Easter Inch Court Easter Inch Industrial Estate Bathgate West Lothian EH48 2FJ % 01506 657335 ď‚šď€ info@wlfin.org.uk H www.wlfin.org.uk
looking after generations throughout West Lothian